Panaxia Q2 Revenue Grows 19.2% Reaching $5.49M, Sells Its Secondary Operations In Israel

Panaxia Labs Israel Ltd. PNAX PXLIF a subsidiary of Panaxia Global released its financial reports on Thursday for the second quarter and first half of 2021, revealing second-quarter revenues of NIS17.6 million ($5.49 million), up by 19.2% from NIS14.8 million in the same quarter of 2020.

Financial Highlights

• Panaxia's revenues in the first half of 2021 amounted to NIS37.3 million, an increase of 38.4% compares to revenues of NIS26.9 million in the same period last year. The increase in revenues is due to both an increase in sales of finished products to patients and pharmacies and a rise in revenues from manufacturing services. In addition, during the first half of 2021, the company made sales to Germany and Cyprus.
• The net profit in the 2nd quarter of 2021 reached NIS3.6 million, compared to a net loss of NIS8.7 million in the corresponding quarter last year, and 8.3 million in the previous quarter.
• Operating profit in the 2nd quarter of 2021 amounted to NIS3.7 million, in comparison with an operating loss of NIS8.6 million in the corresponding quarter last year, and an operating loss of 8 million in the previous quarter. The operating loss in the first half of 2021 reached NIS4.3 million, compared with an operating loss of NIS17.9 million in the corresponding period last year.
• As part of their strategy to move away from low-profit activities in Israel and focus on manufacturing and exporting premium products to Europe, Panaxia sold its distribution and logistics operations in Israel and recorded a capital gain of NIS14.8 million and an operational profit of NIS3.7 million.

"We have concluded the second quarter and the first half of the year with an impressive revenue growth compares to last year,” Dr. Dadi Segal, CEO of Panaxia Israel stated. “It includes sales of the company's products in Germany and Cyprus. It is a transition period, the last line of a long-term strategic process for the expansion of European markets and the exit from secondary activities in Israel, which are not at the core of the company's business. This process is expected to materialize significantly in the upcoming quarters. As part of the process, we have decided to exit activities in Israel, that are characterized by high competition and low profitability, and during that time, we have sold the distribution and logistics activities."

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